German’s budget savings policy risks destroying the European project[2] and a collapse of the euro cannot be ruled out, billionaire investor George Soros said in a newspaper interview released on Wednesday.

“German policy is a danger for Europe, it could destroy the European project,” said Soros, who earned $1 billion in 1992 by betting against the British pound.

He added in an interview with German weekly Die Zeit that he “could not rule out a collapse of the euro.”

“Right now the Germans are dragging their neighbors into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk,” he said.